Deck 1: Economic Concepts and Terminologies

Question 1

The economic problem arises since

A)wants are unlimited
B)resources are limited
C)resources are capable of alternative uses
D)all of the above

Answer 1

all of the above

Question 2

Economic problem arises in

A)planned economies
B)free market economies
C)mixed economies
D)all of the above

Answer 2

all of the above

Question 3

The resources are :

A)limited
B)unlimited
C)not only limited but are capable of alternative uses
D)none of the above

Answer 3

not only limited but are capable of alternative uses

Question 4

----- is not an example of free good

A)sunlight
B)car
C)petrol
D)computer

Question 5

The term production refers to:

A)producing things which are capable of satisfying human wants
B)creation or addition of utilities
C)transformation of inputs into output
D)all of the above

Question 6

The problem of allocation of resources is concerned with:

A)what to produce
B)how to produce
C)for whom to produce
D)all of the above

Question 7

The distribution of national product among the members of the society is the problem of:

A)what to produce
B)how to produce
C)for whom to produce
D)all of the above

Question 8

Which one of the following come under macro economics:

A)per capita income
B)study of a firm
C)individual income
D)theory of factor pricing

Question 9

Which one of the following is not come under macro economics

A)national income
B)per capita income
C)disposable income
D)individual income

Question 10

Partial equilibrium analysis come under:

A)micro economics
B)macro economics
C)welfare economics
D)international economics

Question 11

"The starting point of all economic activity is the existence of human wants" Who said this?

A)adam smith
B)selligman
C)ricardo
D)alfred marshall

Question 12

Production and consumption takes place simultaneously in the case of

A)goods
B)services
C)both in the case of goods and services
D)neither in the case of goods and services

Question 13

Economic growth can be achieved through

A)advanced technology
B)expansion of resources
C)both a & b
D)neither a & b

Question 14

Micro economics doesn't deal with:

A)the study of individual economic units
B)determination of factor prices
C)price determination of commodities
D)general equilibrium analysis

Question 15

Name the economist who analyses the subject matter of economics into two branches: micro economic analysis and macro economic analysis.

A)adam smith
B)alfred marshall
C)ragner frisc
D)p a samuelson

Question 16

Transformation of inputs into outputs is known as

A)production
B)consumption
C)distribution
D)exchange

Question 17

----- is an example of secondary input

A)land
B)labour
C)capital
D)raw material

Question 18

Odd-man out from the following

A)steel
B)medicine
C)education
D)train

Question 19

The choice of techniques of production is related to the problem of

A)what to produce
B)how to produce
C)for whom to produce
D)none of the above

Question 20

The functional relationship between inputs and outputs is called

A)production function
B)consumption function
C)investment function
D)saving function

Question 21

Firms owned by stock holders are known as

A)proprietorship
B)partnership
C)corporations
D)none of the above

Question 22

The major objective of a firm is

A)profit maximization
B)revenue maximization
C)sales maximization
D)none of the above

Question 23

Which one of the following is an example of fixed input

A)raw materials
B)casual workers
C)plant and equipments
D)all of the above